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Private Residential Leases (Tax Rebate)

Dr John Caruana  -  30/June/2020

By virtue of L.N. 258 of 2020, the rules prescribe that Rental Income derived on or after 1 January 2020 from private residential leases with a duration of 2 years or more (which is duly registered with the Housing Authority) shall be entitled to a tax rebate if such income is taxed at the rate of 15% under Article 31D of the Income Tax Act (‘ITA’).  

The rebate shall be granted in the form of a deduction from the tax chargeable under Article 31D of the ITA.  The rebate shall be determined by reference to the duration of the lease and the number of bedrooms of the leased premises as stated in the contract:-

Duration of the lease

Number of bedrooms

Tax Rebate

At least two years but less than three years

One

€200

Two

€300

Three or more

€400

Three years or more

One

€300

Two

€400

Three or more

€500

In respect of the year during which a lease commences or is terminated, the rebate shown in the last column of the above table shall be reduced pro-rata to the number of days for which the lease is in force for that year.  In addition, the rebate for any year cannot exceed 15% of the rent derived in that year.

The claim for the tax rebate under these rules shall be made on the TA24 Form (which is expected to be adjusted) and shall be submitted together with the payment of the tax due.

The Authority shall, by not later than the 31st January of each year, furnish the Commissioner with a list of every long private residential lease contract for a duration of at least two (2) years that was registered with it, by the lessor or the lessee, in accordance with the  Private  Residential  Leases  Act as at the  31st December of the preceding year.

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